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Cardano founder faces backlash for his prediction as ADA price eyes 22% advance

  • Cardano price is anticipating a bounce from a crucial demand zone ranging from $1.287 to $1.318.
  • Charles Hoskinson faced slack on Twitter due to his July 2020 prediction.
  • A successful bounce around the support area could propel ADA through immediate resistance levels to tag $1.61.

Cardano price has been on a pullback that has led to a retest of a crucial demand barrier. If the buyers come to the rescue here, ADA will likely propel and embark on a massive upswing.

Predictions gone awry

Charles Hoskinson, the founder of Cardano, has found himself the target of a flurry of attacks on Twitter due to his July 27, 2020 prediction.

In his prediction, Hoskinson mentioned that Cardano blockchain would harbor “hundreds of assets running on Cardano, thousands of DApps, tons of interesting projects and lots of unique use and utility.”

While Cardano has made sufficient progress over the months with its Shelley update, rolling out smart contracts functionality, native asset capabilities, and so on, the interaction with the blockchain has remained relatively low. To be precise, it will take Cardano a few more months to make progress on that front.

However, Twitter users were not as understanding.

Anthony Sassano, a well-known Ethereum supporter, sarcastically added, “Truly revolutionary technology - you are a visionary Charles.”

A Twitter user going by the screen name “Undervalued Cryptos” tweeted,

Hoskinson responded to this tweet saying,

There are thousands of assets on Cardano. I guess you haven't been paying attention. Tons of devs learning, training, writing. Lots of launch apps.

Alonzo and other updates

Cardano is trying to introduce smart contracts functionality via the much-anticipated Alonzo update. This upgrade contains multiple testnet phases, which are color separated. Hoskinson mentioned in a recent video update that there was a delay with the 1.2.8 node and that the next step will be launching by Monday.

Speaking about the Daedalus wallet backend, the founder added that it was slated for full integration by the end of July and the same for the Plutus application backend.

ADA price looks to make equal or higher highs

Cardano price has been on a steady downtrend since its rejection at $1.486 on July 5. So far, ADA has dropped 14% and dipped into a key demand zone, extending from $1.287 to $1.318. Investors can expect Cardano price to start reversing the trend as the bid-orders pile up.

If this were to happen, the so-called “Ethereum killer” is likely to encounter multiple resistance barriers up to $1.486. Here, the bulls and the bears will face a make-or-break moment

A decisive 4-hour candlestick close above this level will signal that the uptrend will continue. In such a case, ADA will rally 8% to tag or sweep the June 15 swing high at $1.61.

In total, this move represents a 22% advance from $1.318.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

While the bounce from the support area stretching from $1.287 to $1.318 is likely, a breakdown of this barrier is plausible. If this were to happen, market participants could expect ADA to slide to the subsequent demand zone extending from $1.156 to $1.196.

While this move might delay the uptrend, it would not halt it.

However, a breakdown of $1.196 will indicate the presence of sellers and invalidate the bullish thesis. If this were to happen, Cardano price would likely retest the range low at $1.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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